Asciano (AIO)

In a broker’s note, entitled “On track for a good result", CIMB notes that Asciano is scheduled to report its full-year earnings on August 21.

“Despite challenging operating conditions in a number of its business, we expect solid earnings growth after another year of good cost-out performance. We think AIO is a key stock to own in the Australian transport sector, with increased capital management likely and the potential for a ports transaction.

“We therefore maintain an Add recommendation on the stock, with our target price of A$6.32 (previously A$6.34) implying a 12-month TSR of 11 per cent.

“We think the stock continues to look attractive on a FY15F P-E of 14.5x, with earnings risks weighted to the upside. Of the Australian transport stocks, we think AIO is the key stock to hold through the results period," CIMB said.